China to Hand Cash to Companies That Limit Layoffs Amid Trade War

Workers at an export clothing factory in Huaibei, Anhui province, on July 15, 2018. Photo: VCG

(Beijing) — China has promised to hand cash to employers who lay off few workers, in the government’s latest attempt to calm jittery nerves among the business community.

The rare move, which aims to ease the financial pressure on companies, reflects Beijing’s growing concern over employment amid slowing domestic growth and an ongoing trade war. Widespread unemployment is likely to breed social instability — something Beijing works very hard to avoid.